CO2 Emissions and Economic Activity: heterogeneity across countries and non stationary series
AbstractThis paper explores the homogeneity of the functional form, the parameters, and the turning point, when appropriate, of the relationship between CO2 emissions and economic activity for 31 countries (28 OECD, Brazil, China, and India) during the period 1950 to 2006 using cointegration analysis. With a sample highly overlapped over time between countries, the result reveals that the homogeneity across countries is rejected, both in functional form and in the parameters of long term relationship. This confirms the relevance of considering the heterogeneity in exploring the relationship between air pollution and economic activity to avoid spurious parameter estimates and infer a wrong behavior of the functional form, which could lead to induce that the relationship is reversed when in fact it is direct.
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Bibliographic InfoPaper provided by Department of Applied Economics at Universitat Autonoma of Barcelona in its series Working Papers with number wpdea1009.
Length: 44 pages
Date of creation: Dec 2010
Date of revision:
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Bound testing; cointegration; CO2 emissions; environmental Kuznets curve; heterogeneity;
Other versions of this item:
- Piaggio, Matías & Padilla, Emilio, 2012. "CO2 emissions and economic activity: Heterogeneity across countries and non-stationary series," Energy Policy, Elsevier, vol. 46(C), pages 370-381.
- Matías Piaggio & Emilio Padilla, 2010. "CO2 emissions and economic activity: heterogeneity across countries and non stationary series," Documentos de Trabajo de la AsociaciÃ³n de EconomÃa EcolÃ³gica en EspaÃ±a 01_2010, Asociación de Economía Ecológica en España.
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
- Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-12-11 (All new papers)
- NEP-ENE-2010-12-11 (Energy Economics)
- NEP-ENV-2010-12-11 (Environmental Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Roger Perman & David I. Stern, 1999. "The Environmental Kuznets Curve: Implications of Non-Stationarity," Working Papers in Ecological Economics 9901, Australian National University, Centre for Resource and Environmental Studies, Ecological Economics Program.
- Mariana Conte Grand & Vanesa D´Elia, 2013. "Using the Box-Cox transformation to approximate the shape of the relationship between CO2 emissions and GDP: a note," CEMA Working Papers: Serie Documentos de Trabajo. 513, Universidad del CEMA.
- Shahbaz, Muhammad & Sbia, Rashid & Hamdi, Helmi, 2013. "The Environmental cost of Skiing in the Desert? Evidence from Cointegration with unknown Structural breaks in UAE," MPRA Paper 48007, University Library of Munich, Germany, revised 03 Jul 2013.
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